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Valued Contributor
thom02099
Posts: 1,318
Registered: ‎08-30-2011

Re: Credit card users surcharge of up to 4 percent


Cleanmachine wrote:

It should be noted that this FEE is a charge from the Merchant, not the credit card companies.

 

 

The surcharge proposed by last year’s settlement is supposed to be equal to the  cost of processing a credit card transaction, which usually comes out to about  1.5 to 3 percent of the purchase. According to the settlement, merchants can’t  charge consumers more than 4 percent. They also won’t be able to add extra fees  to debit card transactions,

Credit card surcharges are illegal in some states, ABC  News reports. The surcharges won’t affect consumers making credit card  purchases in California, Colorado, Connecticut, Florida, Kansas, Maine,  Massachusetts, New York, Oklahoma and Texas.

 

Merchants who want to start charging extra have to take a couple of steps to  warn consumers about the change. They will have to post a sign at their  storefront announcing the extra fee. They’ll also have to disclose the fee at  the checkout counter and on the receipt, according to the EPC.

 

Some of the country’s largest retailers are holding off on adding a fee to  credit card purchases made in their stores. Wal-Mart, Target, Sears, and Home  Depot told NBC News that they do not plan on taking advantage of the new rule.  Rite Aid doesn’t plan on adding surcharges as well, the Wall  Street Journal reports.

 

Some retailers might still be waiting to see how the case plays out in  court. U.S. District Court Judge John Gleeson gave the settlement a tentative  okay in November. The National Retail Federation is not a party to the lawsuit,  but claims that their members would be negatively affected by the settlement.  They plan to challenge the judge’s verdict in court, according to a press  release.

 

A final ruling on this case will be made later this year, meaning  modifications to the settlement might surface later on.

 

 


In addition to this and other statements, MSN Finance article reported that, if a merchant has businesses in the states that DO NOT allow fees as well as states that do not PROHIBIT fees, the merchant nonetheless  will NOT BE ALLOWED TO CHARGE A FEE!!  They have to be consistent across their stores, they cannot charge a fee where prohibited but charge where not prohibited. 

 

AMEX is out of the picture, since they have a clause in their merchant agreements that specifically PROHIBIT any sort of fee such as a surcharge. 

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Valued Contributor
thom02099
Posts: 1,318
Registered: ‎08-30-2011

Re: Credit card users surcharge of up to 4 percent

[ Edited ]

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

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Established Contributor
dodgeball
Posts: 761
Registered: ‎10-16-2007

Re: Credit card users surcharge of up to 4 percent


thom02099 wrote:

Cleanmachine wrote:

It should be noted that this FEE is a charge from the Merchant, not the credit card companies.

 

 

The surcharge proposed by last year’s settlement is supposed to be equal to the  cost of processing a credit card transaction, which usually comes out to about  1.5 to 3 percent of the purchase. According to the settlement, merchants can’t  charge consumers more than 4 percent. They also won’t be able to add extra fees  to debit card transactions,

Credit card surcharges are illegal in some states, ABC  News reports. The surcharges won’t affect consumers making credit card  purchases in California, Colorado, Connecticut, Florida, Kansas, Maine,  Massachusetts, New York, Oklahoma and Texas.

 

Merchants who want to start charging extra have to take a couple of steps to  warn consumers about the change. They will have to post a sign at their  storefront announcing the extra fee. They’ll also have to disclose the fee at  the checkout counter and on the receipt, according to the EPC.

 

Some of the country’s largest retailers are holding off on adding a fee to  credit card purchases made in their stores. Wal-Mart, Target, Sears, and Home  Depot told NBC News that they do not plan on taking advantage of the new rule.  Rite Aid doesn’t plan on adding surcharges as well, the Wall  Street Journal reports.

 

Some retailers might still be waiting to see how the case plays out in  court. U.S. District Court Judge John Gleeson gave the settlement a tentative  okay in November. The National Retail Federation is not a party to the lawsuit,  but claims that their members would be negatively affected by the settlement.  They plan to challenge the judge’s verdict in court, according to a press  release.

 

A final ruling on this case will be made later this year, meaning  modifications to the settlement might surface later on.

 

 


In addition to this and other statements, MSN Finance article reported that, if a merchant has businesses in the states that DO NOT allow fees as well as states that do not PROHIBIT fees, the merchant nonetheless  will NOT BE ALLOWED TO CHARGE A FEE!!  They have to be consistent across their stores, they cannot charge a fee where prohibited but charge where not prohibited. 

 

AMEX is out of the picture, since they have a clause in their merchant agreements that specifically PROHIBIT any sort of fee such as a surcharge. 


That makes this lawsuit for the most part without teeth

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Valued Contributor
thom02099
Posts: 1,318
Registered: ‎08-30-2011

Re: Credit card users surcharge of up to 4 percent


dodgeball wrote:

thom02099 wrote:

Cleanmachine wrote:

It should be noted that this FEE is a charge from the Merchant, not the credit card companies.

 

 

The surcharge proposed by last year’s settlement is supposed to be equal to the  cost of processing a credit card transaction, which usually comes out to about  1.5 to 3 percent of the purchase. According to the settlement, merchants can’t  charge consumers more than 4 percent. They also won’t be able to add extra fees  to debit card transactions,

Credit card surcharges are illegal in some states, ABC  News reports. The surcharges won’t affect consumers making credit card  purchases in California, Colorado, Connecticut, Florida, Kansas, Maine,  Massachusetts, New York, Oklahoma and Texas.

 

Merchants who want to start charging extra have to take a couple of steps to  warn consumers about the change. They will have to post a sign at their  storefront announcing the extra fee. They’ll also have to disclose the fee at  the checkout counter and on the receipt, according to the EPC.

 

Some of the country’s largest retailers are holding off on adding a fee to  credit card purchases made in their stores. Wal-Mart, Target, Sears, and Home  Depot told NBC News that they do not plan on taking advantage of the new rule.  Rite Aid doesn’t plan on adding surcharges as well, the Wall  Street Journal reports.

 

Some retailers might still be waiting to see how the case plays out in  court. U.S. District Court Judge John Gleeson gave the settlement a tentative  okay in November. The National Retail Federation is not a party to the lawsuit,  but claims that their members would be negatively affected by the settlement.  They plan to challenge the judge’s verdict in court, according to a press  release.

 

A final ruling on this case will be made later this year, meaning  modifications to the settlement might surface later on.

 

 


In addition to this and other statements, MSN Finance article reported that, if a merchant has businesses in the states that DO NOT allow fees as well as states that do not PROHIBIT fees, the merchant nonetheless  will NOT BE ALLOWED TO CHARGE A FEE!!  They have to be consistent across their stores, they cannot charge a fee where prohibited but charge where not prohibited. 

 

AMEX is out of the picture, since they have a clause in their merchant agreements that specifically PROHIBIT any sort of fee such as a surcharge. 


That makes this lawsuit for the most part without teeth


Agreed!  As I understand it, there's going to be some sort of appeal on the lawsuit so it's by no means a done deal.  And yet articles on the internet seem to indicate, at least by headlines, that this is going to happen immediately.  The big retailers aren't gonna do it, so there's little worry of this becoming commonplace. 

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frugalQ
Posts: 479
Registered: ‎03-23-2012

Re: Credit card users surcharge of up to 4 percent

That was my thought, too. With all of the restrictions, it appears the change would impact only local stores that don't accept Amex. Maybe the local corner store, etc.

The article did state that most merchants embed the swipe fee into the cost of the merchandise anyway.
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Valued Contributor
visorboy1974
Posts: 1,129
Registered: ‎05-17-2010

Re: Credit card users surcharge of up to 4 percent

I highly doubt this will happen with many merchants.  And I'd be shocked out of my mind if any major establishment would impose the fee.  They simply have too much to lose.  

Valued Contributor
ryanbush
Posts: 1,294
Registered: ‎08-19-2012

Re: Credit card users surcharge of up to 4 percent


thom02099 wrote:

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...


I was just guessing 100%, I'm a typical younger middle class person.  I go out to eat for lunch every day with tons of different people in my age group as well as doing activities on the weekend... out of the 20-30 people I would consider my group of friends maybe only one or two other people use credit cards religiously, most use debit.

 

now I know a lot of big spenders and business owners use credit cards, as well as members of this board (most of us are obsessed with our rewards) 

 

Also in my experience with most middle class americans the majority use debit (these fees are only for CC not Debit)

 

So again this was just from my experience, I challenge you in your normal day to day activites such as going to starbucks or walmart or your local eatery.  just check out what card everyone is paying with, I'm betting 75% will be debit and not credit....  I'm going to start taking a count myself over the next couple weeks 

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Valued Contributor
thom02099
Posts: 1,318
Registered: ‎08-30-2011

Re: Credit card users surcharge of up to 4 percent


ryanbush wrote:

thom02099 wrote:

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...


I was just guessing 100%, I'm a typical younger middle class person.  I go out to eat for lunch every day with tons of different people in my age group as well as doing activities on the weekend... out of the 20-30 people I would consider my group of friends maybe only one or two other people use credit cards religiously, most use debit.

 

now I know a lot of big spenders and business owners use credit cards, as well as members of this board (most of us are obsessed with our rewards) 

 

Also in my experience with most middle class americans the majority use debit (these fees are only for CC not Debit)

 

So again this was just from my experience, I challenge you in your normal day to day activites such as going to starbucks or walmart or your local eatery.  just check out what card everyone is paying with, I'm betting 75% will be debit and not credit....  I'm going to start taking a count myself over the next couple weeks 



Must be a generational thing ! :smileyhappy:  I'm a 60something guy, I used my debit card early on when I was in the rebuilding stage of my credit, but then realised that the only way to get my scores to increase was to use credit wisely.  Now, I use my credit cards for everything that I used to use my debit card for...and I mean everything!  My debit card rarely gets used.  And since I've been using credit cards more frequently, I do become aware of the usage of others.  In grocery stores, at pay-at-the-pump gas stations,restaurants, it's almost always plastic that I see flying around!  Grocery store seems to be on the of last remaining places where some people still write checks.

 

Either way, this fee thing seems to be a non-issue as most retailers are not likely to tack it on.  And as was pointed out earlier, many retailers have already built in the swipe fee in the cost of the products they are selling.

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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012

Re: Credit card users surcharge of up to 4 percent

Purchase, transaction volume in U.S.
(Through Dec. 31, 2011)

  • Visa debit purchase volume: $1.15 trillion (Source: Visa.com)
  • Visa debit transaction volume: 30.7 billion (Source: Visa.com)
  • MasterCard debit purchase volume: $393 billion (Source: MasterCard.com)
  • MasterCard debit transaction volume: 9.85 billion (Source: MasterCard.com)

http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276...

Valued Contributor
ryanbush
Posts: 1,294
Registered: ‎08-19-2012

Re: Credit card users surcharge of up to 4 percent


thom02099 wrote:

ryanbush wrote:

thom02099 wrote:

ryanbush wrote:

dodgeball wrote:

Charging this fee just might be the death of many stores. Dont see it happening on a large scale


doubtful, 95% of people (guesstimate) use debit or cash now days anyway.... only people who are hard core CC users will notice 


Cite your source please.  I realise you are stating guestimate, but I strongly disagree.  If you are saying the MAJORITY of people use cash or debit cards, then can you cite your source on that?  Most of the people I know do not carry cash at all. 

 

Here's an article about the movement to a cashless society, where it is stated that only 7% of all transactions in the USA are cash only:

 

http://theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-people-would-...


I was just guessing 100%, I'm a typical younger middle class person.  I go out to eat for lunch every day with tons of different people in my age group as well as doing activities on the weekend... out of the 20-30 people I would consider my group of friends maybe only one or two other people use credit cards religiously, most use debit.

 

now I know a lot of big spenders and business owners use credit cards, as well as members of this board (most of us are obsessed with our rewards) 

 

Also in my experience with most middle class americans the majority use debit (these fees are only for CC not Debit)

 

So again this was just from my experience, I challenge you in your normal day to day activites such as going to starbucks or walmart or your local eatery.  just check out what card everyone is paying with, I'm betting 75% will be debit and not credit....  I'm going to start taking a count myself over the next couple weeks 



Must be a generational thing ! :smileyhappy:  I'm a 60something guy, I used my debit card early on when I was in the rebuilding stage of my credit, but then realised that the only way to get my scores to increase was to use credit wisely.  Now, I use my credit cards for everything that I used to use my debit card for...and I mean everything!  My debit card rarely gets used.  And since I've been using credit cards more frequently, I do become aware of the usage of others.  In grocery stores, at pay-at-the-pump gas stations,restaurants, it's almost always plastic that I see flying around!  Grocery store seems to be on the of last remaining places where some people still write checks.

 

Either way, this fee thing seems to be a non-issue as most retailers are not likely to tack it on.  And as was pointed out earlier, many retailers have already built in the swipe fee in the cost of the products they are selling.


I agree with you, my debit card hasn't been out of my wallet in almost 6 months now...  and I do think it is a generational thing, as most people my age have been taught growing up that credit cards are bad and get you in trouble, most people don't see the benefits as we do.

 

I also see all the plastic flying around, I just notice a majority of the time it's debit and not credit 

 

I can also see it as dangerous as this world is based on instant gratification and people always want things now as opposed to waiting until they can afford them

 

 

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